Amazon buying Whole Foods

[sighyoung]

https://www.bloomberg.com/gadfly/articl ... ter-gadfly

[Famous Mortimer]

So, are Amazon finally making money?

[AWvsCBsteeeerike3]

So, are Amazon finally making money?

Amazon has always 'made money' but they've always dumped it all back into r&d

[lukethedrifter]

Inevitable but not good. How long until the collapse of capitalism?

[pioneer98]

https://gizmodo.com/just-in-time-amazon ... 1796195563

Following the announcement of Amazon’s massive bid to buy the Whole Foods grocery chain, the Washington Post reports that the company has patented an algorithm that’s designed to discourage “mobile window shopping.” Customers’ habit of visiting stores like Borders and checking the Amazon prices while they browse is understood to have played a major factor in Amazon’s competitive victories over the last decade, so it’s beginning to take measures to ensure that it doesn’t suffer the same fate.

The algorithm isn’t going to prevent a dedicated customer from checking out other retailers on their phones... for now. All it does is make it more difficult for any shoppers who are on the store’s wifi. The “Physical Store Online Shopping Control” patent analyzes the mobile browsing of the customer and if it determines that they are visiting a competitor’s website it will redirect them in one of a few ways. From the report:

It may block access to the competitor’s site, preventing customers from viewing comparable products from rivals. It might redirect the customer to Amazon’s own site or to other, Amazon-approved sites. It might notify an Amazon salesperson to approach the customer. Or it might send the customer’s smartphone a text message, coupon or other information designed to lure the person back into Amazon’s orbit.

This isn’t a five-alarm fire warning of impending dystopia but it should give everyone pause at a crucial moment in Amazon’s history. Most analysts who covered the Whole Foods deal yesterday understood that it likely signals a huge expansion of the company’s ambitious delivery plans. The New York Times’ outlook was a little more granular in its outlook, saying that Bezos and co. are always looking for a place to experiment with what works. Amazon is gradually pulling everyone deeper into its eco-system and playing around with throttling customer’s mobile browsing is not the greatest omen.

[lukethedrifter]

We're doomed.

[BottenFieldofDreams]

Do you know if they use standard or metric on Elysium? I'm just wondering what kind of wrenches to buy my son. I figure it's his best chance.

[AWvsCBsteeeerike3]

It should be noted that Bezos has had some pretty spectacular fails on his path. The Amazon Fire phone was a complete flop. They had a couple wallet/paypal services that went nowhere. Askville. Etc.

The thing is they paid a ~25% markup in relation to wall street's value. The ideas they implement to make up that difference will have to be significant. Obviously Amazon feels they can do that, but they have to execute now.

Not sure what they're planning. There are ideas to do it with the ability to automate the check out process where a system keeps track of what is in the cart and charge for those items as customers leave the store. They could deliver food, but there are massive logistical obstacles both for items that need to be delivered immediately (eg, ice cream/frozen goods) and items that people want immediately (eg, another 6 pack or wine or something to make for dinner in a couple hours).

Walmart, much to the chagrin of people both on GRB and elsewhere, has started experimenting with employees delivering these goods. But, even that system doesn't necessarily solve the problem of getting people their items immediately as there may be a 3, 4, or 5 hour delay if not longer.

In short, it's exciting/terrifying to think what Amazon has in store, but it's also difficult to fathom what they're going to do as the problem is still that 'last mile' so to speak. Drones come to mind. And, sure, people may start buying more cereal and toothpaste from them. But, that doesn't justify the purchase price.

[ghostrunner]

Not sure what they're planning. There are ideas to do it with the ability to automate the check out process where a system keeps track of what is in the cart and charge for those items as customers leave the store.

Mentioned that above - they have one small store doing it already.

I'd be really tempted by that. My local grocery is a Wal-Mart Neighborhood Market, and I often go in for only a couple things only to be held up at the checkout line for 10 minutes.

[AWvsCBsteeeerike3]

Not sure what they're planning. There are ideas to do it with the ability to automate the check out process where a system keeps track of what is in the cart and charge for those items as customers leave the store.

Mentioned that above - they have one small store doing it already.

I'd be really tempted by that. My local grocery is a Wal-Mart Neighborhood Market, and I often go in for only a couple things only to be held up at the checkout line for 10 minutes.

Right. I wonder if this is Amazon's way to enter into the B&M industry moreso than it already has. Leave Whole Foods alone until they perfect that pilot store/no checkout model, then rebrand Whole Foods as Amazon and launch that model.

If so, it seems it's not really them transforming the grocery industry as simply entering into it.

And, I still question the feasibility of everyone buying groceries online due to the above mentioned last mile issue. As you mention, think of any grocery store on a given day. There's probably, at a minimum, 10+ people checking out at any given time. Even with drones, it's almost impossible to get those groceries delivered in a timely manner. And, that doesn't even account for the loss of bulk.

Painting with a broad brush....people have grocery lists. They write it down for a week then go tot he store once and spend $100 or whatever....One trip to the store once a week. If they can spend $20 to have fresh thyme, potatoes, and steaks delivered in an hour, surely they'll do that instead of saving up a weeks worth of groceries once a week. That creates even more trips.

while bezos is a brilliant mind, it's going to take something revolutionary to get over that hurdle.